Paulson's gold investor group urges deals, costs purge

FILE PHOTO : Gold granulate is seen at a plant of a gold refiner and bar manufacturer in the southern Swiss town of Balerna December 20, 2012. REUTERS/Michael Buholzer

(Reuters) - Gold bull John Paulson’s investor coalition on Thursday urged the world’s largest gold miners to immediately cut what it called excessive governance and administrative (G&A) costs and said smaller rivals should pursue no-premium mergers to boost shareholder returns.

Concerns over global growth and trade uncertainties have pushed gold prices to multi-year highs, stoking expectations of deals among miners and reviving anxieties over cost control. This month, gold XAU= climbed to its highest level since 2013 hitting $1,503.04 per ounce Thursday.

Major miners including Polymetal (POLYP.L), Kinross Gold Corp (K.TO) and Newmont Goldcorp Corp (NEM.N) spend nearly two times more on G&A than non-gold producing rivals, Paulson’s Shareholders Gold Council said in a report.